QGX Ltd.
TSX : QGX

QGX Ltd.

March 19, 2008 16:04 ET

QGX Announces Equity Financing

WATERDOWN, ONTARIO--(Marketwire - March 19, 2008) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER US NEWSWIRES

QGX Ltd. (TSX:QGX) (the "Company") is pleased to announce that it has arranged a "best-efforts" private placement of 1,250,000 common shares of the Company (the "Offering") at $3.40 per common share for gross proceeds of approximately $4.3 million. The Company has retained CIBC World Markets Inc. ("CIBC World Markets") to act as exclusive agent (the "Agent") in connection with the Offering and has granted CIBC World Markets the option to increase the size of the Offering by an additional 810,000 common shares until March 28, 2008. The Offering is expected to close on or about April 3, 2008.

The net proceeds from the Offering will be used to augment the Company's working capital position as it proceeds with its review of strategic alternatives, as originally announced on February 12, 2008.

The common shares issuable pursuant to the Offering will be subject to a four-month period under applicable securities laws. The Offering is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals.

The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

About QGX

QGX is a Canadian-based company that has been exploring for mineral deposits in Mongolia since 1994. QGX's two most advanced properties are the Baruun Naran and the Golden Hills projects. In January 2008 QGX announced that an independent 43-101 pre-feasibility study for Baruun Naran showed a net present value (discounted at 10%) of US$499 million on an after-tax basis. QGX announced in August 2007 an independent NI 43-101 resource for coking and thermal coal at Baruun Naran comprised of 93.3 Mt of measured and 159.6 Mt of indicated (252.9 Mt contained in measured and indicated) and 11.1 Mt of inferred resources. QGX filed in April 2007 an independent NI 43-101 report outlining a positive preliminary economic assessment for its copper-gold-silver project at Golden Hills. Barrick Gold Corp. holds an approximate 9% equity interest in QGX as part of a strategic relationship between the two companies.

This press release includes certain "forward-looking statements". All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization, results and future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statement.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • QGX Ltd.
    David Anderson
    Executive Chairman
    (905) 689-9442
    or
    QGX Ltd.
    Paul Zweng
    President/CEO
    (925) 855-0505
    Website: www.qgxgold.com